Fed fines UBS for alleged misconduct by Credit Suisse in the Archegos blow-up

The U.S. Federal Reserve said Monday that UBS Group AG
UBS,
+1.08%
must pay a total of $387 million for alleged misconduct related to $5.5 billion in losses tied to the default of Archegos in 2021. The action includes a $268.5 million fine and consent order against UBS Group AG
UBS,
+1.08%
for misconduct by Credit Suisse, which is now owned by UBS. The Fed accused Credit Suisse of unsafe and unsound counterparty credit risk management with Archegos, its former counterparty that went out of business. The Fed is requiring Credit Suisse to improve its counterparty risk management practices. The Federal Reserve Board is taking the action in conjunction with the Swiss Financial Market Supervisory Authority and the Bank of England’s Prudential Regulation Authority.